WHY IS IT IMPORTANT?
Market value is the value of your property as seen through the eyes of a prospective buyer who has many properties from which to choose. This is why it is crucial NOT to choose an agent based purely on the highest valuation. A property that incorrectly priced will simply help other properties sell, while your property remains “for sale”.
BENEFITS OF CORRECT PRICING
– Creates an impression of relatively good value.
– Increases advertising response.
– Stimulates buyer interest.
– Achieves maximum exposure at optimum time.
– Compensates for property’s shortfalls.
– Maintains seller’s negotiating advantage.
– Maximum price achieved.
– Marketing period minimised.
– Disappointment and haggling reduced.
– Least disruption and fewer show houses.
DISADVANTAGES OF INCORRECT PRICING
– Loses interested buyers.
– Extends marketing time.
– Attracts lower offers.
– Reduces advertising response.
– Buyers are reluctant to make offers.
– Competing properties become more attractive.
– Property becomes over-exposed.
– Lack of buyer interest.
– Seller loses best marketing time – first 3 weeks.
WHEN TO ADJUST PRICE?
It is vital to continuously measure market response to the property once it is offered for sale, as well as to monitor market trends in the area and make the necessary adjustments indicated by these trends. This is why feedback from agent to seller is so critical and why it is advisable to select one agent to manage the responsibility of marketing your